Generic Transaction Procedure
We follow the international protocol for commodities transactions. All of our suppliers cover all contracts with a performance bond, whose proceeds more than off-set buyer expenses should a default ever occur. More and more sellers favour a buyer who shows sincerity and commitment in the form of a Bank Comfort Letter (BCL).
Some transactions are different, but generally, our transactions follow the procedure listed below*:
- Buyer issues Letter of Intent (LOI)
- Buyer issues ICPO
- Seller issues Full Corporate Offer (FCO) to buyer.
- Buyer signs, seals, and sends FCO to seller.
- Seller sends draft sales and purchase contract to buyer to review, sign, seal and returns to seller.
- Buyer/seller signs, seals and return.
- Contracts lodge in each bank for executing contract.
- Buyer issues non-operative bank guarantees as per contract agreed terms.
- Seller issues proof of product (POP) and 2% performance bond to activate BGS via bank-to-bank transfer.
- Delivery commences after acceptable buyer’s payment instrument.
In line with usual practice we reserve the right to keep supplier information confidential until a contract is signed and proof of funding is seen and accepted.
* Please note that the procedure for brokering of precious metals is different. Please Contact Us for full details.